Food prices dipped 0.1 percent in July as egg prices tumbled after surging in recent months. Food prices increased 0.6 percent in June. Wholesale chicken egg prices fell 24.2 percent in July after soaring a record 84.5 percent in June.

The volatile trade services component, which mostly reflects profit margins at retailers and wholesalers, rose 0.4 percent in July after increasing 0.2 percent in the prior month.

A key measure of underlying producer price pressures that excludes food, energy and trade services rose 0.2 percent last month after increasing 0.3 percent in June. The so-called core PPI was up 0.9 percent in the 12 months through July.